The Chinese Cash and Stock Dividend Puzzles: Evidence from Joint Earnings and Dividend Announcements

36 Pages Posted: 25 Aug 2012 Last revised: 14 Nov 2012

See all articles by John G. Powell

John G. Powell

Massey University - Department of Finance Banking and Property

Meifen Qian

Jiangxi University of Finance and Economics

Jing Shi

Macquarie UNiversity

Date Written: August 1, 2012

Abstract

Chinese companies report year-end earnings and dividends simultaneously, so when the two sets of news are in conflict, the relative importance of earnings versus dividends can be disentangled. Chinese dividend announcements take precedence over earnings news, as revealed by Cumulative Absolute Returns for two-way earnings and dividend news sorts of the data, with investors reacting most favourably to stock dividend announcements, the least informative form of dividend.

Keywords: stock dividend, Chinese stock dividend puzzle, Chinese cash dividend puzzle

JEL Classification: O16

Suggested Citation

Powell, John G. and Qian, Meifen and Shi, Jing, The Chinese Cash and Stock Dividend Puzzles: Evidence from Joint Earnings and Dividend Announcements (August 1, 2012). Asian Finance Association (AsFA) 2013 Conference. Available at SSRN: https://ssrn.com/abstract=2135353 or http://dx.doi.org/10.2139/ssrn.2135353

John G. Powell

Massey University - Department of Finance Banking and Property ( email )

Private Bag 11 222
Massey University
Palmerston North, 4442
New Zealand

Meifen Qian (Contact Author)

Jiangxi University of Finance and Economics ( email )

South Lushan Road
Nanchang, Jiangxi 330013
China

Jing Shi

Macquarie UNiversity ( email )

Eastern Rd.
North Ryde
Sydney, NSW 2109
Australia

HOME PAGE: http://https://researchers.mq.edu.au/en/persons/jing-shi

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